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Full text of "North Carolina Register v.3 no. 18 (12/15/1988)"

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NORTH CAROLINA 

REGISTER 



IN THIS ISSUE 



PROPOSED RULES 




Administration 
Administrative Hearings 
Agricultural Finance 
CPA Examiners 
Housing Finance 
Medical Examiners 
NRCD 

LIST OF RULES AFFECTED 



ISSUE DATE: DECEMBER 1 5, 1 988 



Volume 3 • Issue 1 8 • Pages 834-853 



INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE 



NORTH CAROLINA REGISTER 

The North Carolina Register is published bi-monthly 
and contains information relating to agency, executive, 
legislative and judicial actions required by or affecting 
Chapter 150B of the General Statutes. All proposed, ad- 
ministrative rules and amendments filed under Chapter 
150B must be published in the Register. The Register 
will typically comprise approximately fifty pages per 
issue of legal text. 

State law requires that a copy of each issue be pro- 
vided free of charge to each county in the state and to 
various state officials and institutions. The North 
CaroUna Register is available by yearly subscription at 
a cost of ninety-five dollars ($95.00) for 24 issues. 

Requests for subscriptions to the North Carolina 
Register should be directed to the Office of Ad- 
ministrative Hearings, P. 0. Drawer 1 1666, Raleigh, N. 
C. 27604, Attn: Subscriptions. 

ADOPTION, AMENDMENT, AND REPEAL OF 
RULES 

An agency intending to adopt, amend, or repeal a rule 
must first publish notice of the proposed action in the 
North Carolina Register. The notice must include the 
time and place of the public hearing; a statement of how 
public comments may be submitted to the agency either 
at the hearing or otherwise; the text of the proposed 
rule or amendment; a reference to the Statutory 
Authority for the action and the proposed effective date. 

The Director of the Office of Administrative Hearings 
has authority to publish a summary, rather than the 
full text, of any amendment which is considered to be 
too lengthy. In such case, the full text of the rule con- 
taining the proposed amendment will be available for 
public inspection at the Rules Division of the Office of 
Administrative Hearings and at the office of the pro- 
mulgating agency. 

Unless a specific statute provides otherwise, at least 
30 days must elapse following publication of the pro- 
posal in the North Carolina Register before the agency 
may conduct the required public hearing and take ac- 
tion on the proposed adoption, amendment or repeal. 

When final action is taken, the promulgating agency 
must file any adopted or amended rule for approval by 
the Administrative Rules Review Commission. Upon ap- 
proval of ARRC, the adopted or amended rule must be 
filed with the Office of Administrative Hearings. If it 
differs substantially from the proposed form published 
as part of the public notice, upon request by the agen- 
cy, the adopted version will again be published in the 
North Carolina Register. 

A rule, or amended rule cannot become effective 
earlier than the first day of the second calendar month 
after the adoption is filed with the Office of Ad- 
ministrative Hearings for publication in the NCAC. 

Proposed action on rules may be withdrawn by the 
promulgating agency at any time before final action is 
taken by the agency. 

TEMPORARY RULES 

Under certain conditions of an emergency nature, 
some agencies may issue temporary rules. A temporary 
rule becomes effecti\'e when adopted and remains in 



effect for the period specified in the rule or 180 days, 
whichever is less. An agency adopting a temporary rulej 
must begin normal rule-making procedures on the per-* 
manent rule at the same time the temporary rule is 
adopted. 



NORTH CAROLINA ADMINISTRATIVE CODE 



I 



The North Carolina Administrative Code (NCAC) is 
a compilation and index of the administrative rules of 
25 state agencies and 38 occupational licensing boards. 
The NCAC comprises approximately 15,000 letter size, 
single spaced pages of material of which approximate- 
ly 35% is changed annually. Compilation and publica- 
tion of the NCAC is mandated by G.S. 150B-63(b). 

The Code is divided into Titles and Chapters. Each 
state agency is assigned a separate title which is fur- 
ther broken down by chapters. Title 21 is designated 
for occupational licensing boards. 

The NCAC is available in two formats. 

(1) Single pages may be obtained at a minimum 
cost of two dollars and 50 cents ($2.50) for 10 
pages or less, plus fifteen cents ($0. 1 5) per each 
additional page. 

(2) The full publication consists of 52 volumes 
totaling in excess of 15,000 pages. It is sup- 
plemented monthly with replacement pages. A 
one year subscription to the full publication in- 
cluding supplements can be purchased for 
seven hundred and fifty dollars ($750.00). In- 
dividual volumes may also be purchased with 
supplement service. Renewal subscriptions for 
supplements to the initial publication available. 

Requests for pages of rules or volumes of the NCAC 
should be directed to the Office of Administrative 
Hearings. 

NOTE 

The foregoing is a generalized statement of the pro- 
cedures to be followed. For specific statutory language, 
it is suggested that Articles 2 and 5 of Chapter 150B of 
the General Statutes be examined carefully. 

CITATION TO THE NORTH CAROLINA 
REGISTER 

The North Carolina Register is cited by volume, issue, 
page number and date. 1:1 NCR 101-201, April 1, 1986 

refers to Volume 1, Issue 1, pages 101 through 201 of 
the North Carolina Register issued on April 1, 1986. 



North Carolina Register. Published bi-monthly by 
the Office of Administrative Hearings, P.O. 
Drawer 1 1666, Raleigh, North Carolina 27604, pur- 
suant to Chapter 150B of the General Statutes. 
Subscriptions ninety-five dollars ($95.00) per year. 
North Carolina Administrative Code. Published 
in looseleaf notebooks with supplement service by 
the Office of Administrative Hearings, P.O. 
Drawer 1 1666, Raleigh, North Carolina 27604, pur- 
suant to Chapter 150B of the General Satutes. 
Subscriptions seven hundred and fifty dollars 
($750.00). Individual volumes available. 



NORTH 
CAROLINA 
REGISTER 



ISSUE CONTENTS 




Office of Adminiitrathe Hearings 

P. O. Drawer 11666 

Raleigh, AC 27604 

(919) 733 - 2678 



Robert A. Mdott, 

Director 
James R. Scarcella Sr., 

Deputy Director 
Molly \lasich, 

Director APA Services 



Staff: 

Ruby Creech, 

Publications Coordinator 
Teresa Kilpatrick, 

Editorial Assistant 
Jean Shirley, 

Editorial Assistant 



\. PROPOSED RULES 
Administration 

State Construction 834 

Administrative Hearings 

Civil Rights Division 843 

Independent Agencies 
N. C. Agricultural I'inance 

Authority 841 

N. C. Housing Finance 

Agency 839 

Justice 

Private Protective Services 834 

Licensing Boards 
N. C. State Board of 

CPA Fxaminers 837 

N. C. State Board of 

Medical Fxaminers 838 

NRCD 

Community Assistance 836 

Wildlife Resources 
Commission 835 

II. LIST OF RULES AFFECTED 

December 1, 1988 845 

III. CU.MULATFVE INDEX 850 



NORTH CAROLINA RKGISTER 

Publication Deadlines and Schedules 

(September I9SS - March 19S9) 



Issue 


I^st Day 


last Day 


Earliest 


* 


Date 


for 


for 


Date for 


Earliest 




Filing 


Electronic 


PubUc 


Effective 






Filing 


Hearing & 
Adoption by 
Agency 


Date 


+++♦+*++ 


+++♦♦+♦+ 


******** 


+++♦++++ 


*******i 


09 01 '88 


08 1188 


08/18,88 


10 '01/88 


01/01/89 


09, 15 '88 


08 26 88 


09/0288 


10/15/88 


01/01/89 


10,03/88 


09/12 88 


09/19/88 


11/02/88 


02/01/89 


10 14/88 


09/26 88 


10/03,,'88 


11/13/88 


02/01/89 


11 01/88 


10 11 88 


10/18/88 


12/01 '88 


03/01/89 


11 15/88 


10,26'88 


11/02/88 


12/15/88 


03/01/89 


12 01/88 


1 1 07 88 


11/15/88 


12/31 '88 


04/01 '89 


12 15'88 


11 23 88 


12/02/88 


01/14/89 


04/01/89 


01,0289 


12 08 88 


12/15/88 


02/01/89 


05/01/89 


01 16 89 


12 27,88 


01/03/89 


02/15/89 


05/01/89 


02/01/89 


01 10 '89, 


01/17/89 


03/03/89 


06/01/89 


02 15/89 


01 26 89 


02/02/89 


03' 17/89 


06/01/89 


03,01/89 


02,08 89 


02/15/89 


03,'31/89 


07/01/89 


03/15/89 


02/21/89 


03/02/89 


04/14/89 


07/01/89 



* The "Earliest Effecth-e Date" is computed assuming that the public hearing 
and adoption occur in the calendar month immediately following the "Issue 
Date" , that the agency files the rule with The Administrative Rules Review 
Commission by the 20th of the same calendar month and that ARRC approves 
the rule at the next calendar month meeting. 



PROPOSED RULES 



TITLE I - DEPARTMENT OF 
ADMINISTRATION 

IS otice is hereby given in accordance with G.S. 
I50B-I2 that the Department of Administration 
intends to amend rule(s) cited as I NCAC SOD 

.0103(a) (3) and (8). 

1 he proposed effective date of this action is April 
I, 1989. ____ 

1 he public hearing will be conducted at J .00 
p.m. on January J 7, J 989 at Large Conference 
Room, State Construction Office, Legislative of 
fice Building, Room 403, 300 N. Salisbury Street, 
Raleigh, North Carolina 2761 L 

(_ omment Procedures: Any interested person 
may present his or her views and comments either 
in writing prior to or at the hearing or orally at the 
hearing. Any person may request information, 
permission to be heard or copies of the proposed 
regulation by writing or calling Becky Barbee, 
Department of Administration, 116 West Jones 
Street, Raleigh, North Carolina 27603-8003 (919) 
733-7232. 

CHAPTER 30 - STATE CONSTRLCTION 

SUBCHAPTER 30D - STATE BLILDING 

COMMISSION DESIGNER SELECTION 

PROCEDURES 

SECTION .0100 - GENERAL PROVISIONS 

.0103 DEFINITIONS 

(a) For purposes of this Subchapter, the fol- 
lowing defmitions shall apply: 

(3) "Designer" means any individual, firm, 
partnership, corporation, association or 
other legal entity permitted by law to 
practice architecture, engineering or land- 
scape architecture e* oup i 'oying in the 
State of North Carolina. 

(8) "Professional services" means those ser- 
vices within the scope of the practice of 
architecture, engineering or landscape ar- 
chitecture ef rjur . 'oying as defmed by the 
public laws of North Carolina. 

Statutory Authority G.S. 143-135.25: 143-135.26. 

TITLE 12 - DEPARTMENT OF JUSTICE 



No 



'otice is hereby given in accordance with G.S. 
I50B-I2 that the N. C. Private Protective Services 



Board intends to adopt rule(s) cited as 12 NCAC 
7D .1001, .1002 and .1003. 

1 he proposed effective date of this action is May 
I, 1989. 

1 he public hearing will be conducted at 12 Noon 
on February 17, 1989 at McKimmon Center, 
Gorman Street at Western Blvd., Raleigh, N. C. 

\^ omment Procedures: File all WRITTEN 
COMMENTS by 5:00 p.m. on February 3, 1989 
with: 

James F. Kirk, Administrator 

P. O. Box 29500 

Raleigh, N. C. 27626 

CHAPTER 7 - PRIVATE PROTECTIVE 
SERVICES 

SUBCHAPTER 7D - PRIVATE PROTECTIVE 
SERVICES BOARD 

SECTION .1000 - RECOVERY FUND 

.1001 DEFINITIONS 

In addition to the defmitions under Article 2 of 
Chapter 74C of the General Statutes of North 
Carolina, the following defmitions shall apply 
throughout this Section: 

(1) "Board" means the Private Protective Ser- 
vices Board. 

(2) "Fund" means the Recovery Fund of the 
Private Protective Services Act. 

(3) "Aggrieved Party" means a person who has 
suffered a reimbursable loss because of a 
licensee defaulting on an obligation owed to 
the person wlule providing private protective 
services. 

(4) "Licensee" means a person who, at the time 
of the act complained of, was licensed by the 
Private Protective Services Board. 

(5) "Reimbursable Loss" means: 

(a) only those losses of money or other 
property which meet all of the following 
tests: 

(i) The obligation was incurred on or after 
July 1, 1983; 

(ii) The loss was caused by a licensee or 
trainee defaulting on an obligation owed 
where such obligation was entered into by 
the licensee or trainee within the scope of 
the licensee's or trainee's employment in 
providing private protective services; and 

(iii) The aggrieved party has exhausted all 
civil remedies against the Ucensee or his 
estate and has complied with these rules. 



NORTH CAROLINA REGISTER 



834 



PROPOSED RULES 



(b) the following shall be excluded from 
"reimbursable losses": 

(i) Losses of spouses, children, parents, 
grandparents, siblmgs, partners, associates 
and employees of the licensee or trainee 
causing the losses; 

(ii) Lx:)sscs covered by any bond, surety 
agreement, or insurance contract to the 
extent covered thereby; and 

(iii) Losses which have been otherwise re- 
ceived from or paid by or on behalf of the 
licensee who defaulted on an obligation. 
(6) "Trainee" means a person who, at the time 

of the act complained of, was licensed as a 

trainee by the Pri\ate Protective Services 

Board. 

Statutfliy Authority G. S. 74C-3I. 

.1002 I'KTITION FOR 11KARIN(./ 
APPLICATION FOR RFLIKF 

The board shall prepare a Form of Petition for 
Hearing and Application for Relief which shall 
require the following minimum infonnation: 

( 1 ) The name and address of the aggrieved 
party; 

(2) The name and address of the hccnsce or 
trainee who defaulted on an obhgation; 

(3) The amount of the alleged loss for which 
application is made; 

(4) The date or period of time during which the 
alleged loss was mcurred; 

(5) A general statement of facts relative to the 
application; 

(6) Verification by the aggrie\ed party; 

(7) All supporting documents, including, but 
not limited to; 

(a) Copies of all contracts, invoices, returned 
checks, etc.; 

(b) Copies of all court proceedings against the 
licensee/trainee; and 

(c) Copies of all documents showing any re- 
imbursement or receipt of funds in pay- 
ment of any portion of the loss. 

Statutory Authority G. S. 74C-3I. 

.1003 PROCESSING APPLICATIONS 

(a) The board shall cause each application to 
be sent to the administrator for investigation and 
report. A copy of the application shall be served 
upon or sent by registered mail to the last known 
address of the licensee trainee who it is claimed 
defaulted on an obhgation. 

(b) The administrator shall conduct such in- 
vestigation in such manner as he deems necessary 
and desirable in order to determine whether the 
application is for a reimbursable loss and in order 



lo guide and advise the board in determining the 
extent, if any, for which the application should 
be paid from the fund. 

(c) A report from the administrator shall be 
submitted to the chairman of the board within a 
reasonable time. 

(d) The board shall hold a hearing on every 
application tiled by an aggrieved party. The 
hearing shall be held before the board and shall 
follow the guidelines set out in Chapter 150B of 
the General Statutes of North Carolina. 

Statutory Authority G. S. 74C-3I. 

TITLP: 15 - DEPARTMENT OF NATURAL 

RESOURCES .\ND CO.MMUM TY 

DEVELOP.MENT 

iS otice is hereby given in accordance with G.S. 
I SOB- 1 2 that the Wildlife Resources Commission 
intends to amend nde(s) cited as 15 NCAC I OF 

.0347. 

I he proposed effective date of this action is April 
I, 19H9. 

I he public hearing will be conducted at 10:00 
a.m. on January 17, 1 989 at Room 3S6, Archdale 
Building. 512 N. Salisbury Street, Raleigh, North 
Carolina. 



Co 



■ omment Procedures: Interested persons may 
present their views either orally or in writing at the 
hearing. In addition, the record of hearing will 
be open for receipt of written comments from 
January 2, 1989 to February I, 1989. Such writ- 
ten comments must be delivered or mailed to the 
Wildlife Commission, 512 N. Salisbury St., 
Raleigh. NC 27611. 

CHAPTER 10 - WILDLIFE RESOURCES AND 
WATER SAFETY 

SLBCHAPTER lOF - MOTORBOATS AND 
WATER SAFETY 

SECTION .0300 - LOCAL WATER SAFETY 
REGULATIONS 

.0347 CRAVEN COUNTY 

(a) Regulated Areas. This Rule applies to the 
following waters in Cra\;en County: 

( 1) that portion of Northwest Creek between 
the entrance buoys at Fairfield Harbour 
Marina and the mouth of Spring Creek, 
and to all of Spring Creek, including the 
bulkheaded area of Fairtield Harbour, in 
Craven County; 



,9.?5 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



(2) that area of water between the entrance 
buoys of the Olde Towne lake, from the 
Trent River and including all of Olde 
Towne l^ke and the bulkhead area of 
Olde Towne Harbour itself. 



(b) Speed Limit. No person shall operate any 
vessel at greater than no-wake speed within the 
regulated areas described in Paragraph (a) of this 
Rule. 

(c) Placement and Maintenance of Markers. 
The Board of Commissioners of Craven County 
is hereby designated a suitable agency for place- 
ment and maintenance of the markers imple- 
menting this Rule, subject to the approval of the 
United States Coast Guard and the United States 
Army Corps of Engineers. 

Statulory Authority G.S. 75A-3; 75A-/5. 
****************** 



Ps otice is hereby given in accordance with G.S. 
I SOB- 1 2 that the NRCD - Division of Community 
Assistance intends to adopt and amend rule(s) 
cited as /5 NCAC I3L .0/06, .0407, .0903, .0908. 
.09/0, .140/ and .1405. 

1 he proposed effective date of this action is April 
/, /989. 

1 he public hearing will be conducted at 3:00 
p.m. on Tuesday, January /7 , /9H9 at Ground 
Floor Hearing Room, Archdale Building, 5/2 N. 
Salisbury Street, Raleigh, N . C. 



Co 



' omment Procedures: A II persons interested in 
the subject of the public hearing are invited to at- 
tend. Comments may be submitted in writing or 
may be presented orally at the hearing. Addi- 
tional information concerning the hearing or the 
proposed adoptions or amendments may be ob- 
tained from: Mr. Steve Culnum, Division of 
Community Assistance, P. O. Box 27687, Raleigh, 
NC 276//. (919) 733-2850. 

CHAPTER 13 - DIVISION OF COMIMUNITY 
ASSISTANCE 

SLBCHAPTER I3L -NORTH CAROLINA 

COMMUNITY DEVELOPMENT BLOCK GR.4NT 

PROGRAM 

SECTION .0100 - GENERAL PROVISIONS 

.0106 AMENDMENTS ADOPTED BY 
REFERENCE 

All referenced federal documents in this Sub- 
chapter are hereby adopted by reference to in- 



clude any later amendments pursuant to G.S. 
1 SOB- 14(c). 

Statutory Authority /43-323; /43B-/0; /50B-/4. 

SECTION .0400 - DISTRIBUTION OF FUNDS 

.0407 GENERAL APPLICATION 
REQUIREMENTS 

(h) Applications submitted for Economic De- 
velopment projects under Section .1400 of this 
Subchapter may be rated or funded for up to 
thrcM? consQCUtivQ montho 90 days from the date 
of original submission. In addition, for applica- 
tions that met the requirements of .0407(c) and 
.1002 of this Subchapter at the time of original 
application submission and in which the original 
project has not been changed significantly, there 
shall be no additional pubUc hearing require- 
ments during the throo conoocuti^'o montho 90 
days. NRCD shall determine whether significant 
changes have been made in a proposed project. 

(i) Applications for CDBG assistance under the 
Economic Development category must be sub- 
mitted with adequate evidence that both public 
hearings were held in accordance with Rule 
.1002(b) of this Subchapter. 

Authority G.S. /43-323: /43B-/0: 42 U.S.C.A. 
5304(a): 24 C.F.R. 570.489. 

SECTION .0900 - (.RANT ADMINISTRATION 

.0903 METHOD OF PAYMENT 

(a) Advance payments will be made by NRCD 
to recipients when the following conditions are 
met: 

(5) All requests for advance payments are re- 
quired to meet immediate disbursing 
needs. The timing and amount of cash 
advances shall be as close as is adminis- 
tratively feasible to the actual disburse- 
ment by the recipient except as described 
in Paragraph (a) f§) (4) of this Rule. 



Authority G.S. / 43-3 23; /43B-/0; 
570.489: 42 U.S.C.A. 5304(g). 



24 C.F.R. 



.0908 PROCUREMEN I STANDARDS 

(a) Local governments shall follow the pro- 
curement standards established in Attachmont Q 
ef tfe» Ofiico e( Manngoment »«4 Budget Circu 
fef N^T A 102 Ri ' si '. L ' d, Uniform Administrativ e 
Requiromonts fof Ciranto in Aid te Stato aft4 
Local Govommontr . . I Attachment Q ©f OMB 
A 102, Ae following dL'tinitiono nhall apply: 
(44 "Grantoo" mcann the recipi e nt »f CDBG 
funds a# dL ' iint ' d h+ Rulo .0103 ef iim 
Subchapter. 



NORTH CAROLINA REGISTER 



836 



PROPOSED RULES 



f^ "I'odural Grantor agoiioy" nnxiivi NRCD. 

f^ "['KL'cutiv e AgL'nciL'i i " momiii NRCD. 
the Administrati\'c Requirements for Grants and 
(?ooperative /Xgreements to State, I ocal and 
I'ederallv Recoffli/ed Indian I'nba] (jovem- 
ments (24 C.h.R., Part S5). 

Authority G.S. / 4-234; J43-J2S through 143-135; 
143-323; I43B-I0; I53A-I5S through 1 53 A- 165; 
159-15: 42 U.S.C.A. 5304(b)(4); 24 C.F.R. 
570.489. 



Small Business I oan Program will revert to the 
regular F'conomic Development grant category. 
Applications for the Small Business 1 oan Pro- 
gram must meet the ehgibility requirements and 
preliminary' award requirements as provided in 
Rule J4()2(a)-(f) and .1404. Selection cnteria for 
the Small Business Ix)an Program are outlined 
in Rule .1405, 



Authority G.S. 143-323; 
5301; 24 C.F.R. 570.4S9. 



I43B-10; 42 U.S.C.A. 



.0910 f'roc;r\m amkndmf.ms 

(b) Citizen Participation. Recipients proposing 
;micndmcnts and other changes to the approved 
application which require prior NRCD approval 
pursuant to Paragraph (a) of this Rule shall hold 
one public hearing in accordance with Paragraph 
fO^ (]} of Rule^.1002, CITIZEN PARTIC- 
IPAIION. 

(c) Citizen objections to the amendment. 
Persons wishing to object to the approval of an 
amendment by NRCD shall make such ob- 
jection in writing to NRCD in accordance with 
Paragraph m (H of Rule .1002 CITIZEN PAR- 
TlcfPAFlON. 

Authority G.S. 143-323; 1 43 B- 10; 159-15; 
159-34; 42 U.S.C.A. 5304(a)(2), (d)(2); 24 
C.F.R. 570.4S9; 24 C.F.R. 570.499. 



SECTION .1400 



FCONOMIC DEVELOPMENT 
PROJECTS 



.1401 DEFINITION 

The Economic Development grant category' in- 
cludes activities in which a majority of funds are 
directed toward promoting the creation or re- 
tention of jobs principally for persons of low- 
and moderate-income. Projects in this category 
must result in direct creation or retention of jobs 
within the grant program period. All eligible 
CDBG activities may be undertaken for the pur- 
poses of economic development. All CDBG 
expenditures which directly assist participating 
private entities must be returned to grant recipi- 
ents or to NRCD as provided in Rule .0907 of 
this Subchapter. NR(?D may allocate up to one 
million dollars (SI. 000,000) of anv annual allo- 
cation of I'xonomic Development funds for 
projects designed to assist small businesses. A 



small bus 



defined as 



a £0] 



ate entity which 



emploNs 20 or feuer full time or fuH time equiv- 
alent employees: and which generates no more 
than sc\en hundred and fifty thousand dollars 
(S75l).()00) in a\erage annual gross sales in the 
latest three ye:u penod as indicated bv federal and 
state ta.x records. Anv funds not utilized for the 



.1405 SELECTION CRITERIA - SMALL 
BUSINESS LOAN PROGRAM 

(a) Projects must meet the minimum standards 
established under each of the following criteria; 
(1) The percentage of CDBG funds directly 

benefitting low- and moderate-income 

persons, 

The CDBG cost per proposed job created, 

and 

The ratio of the amount of non-CDBG 

investment n' the proposed project to the 

amount of CDBG funds in the proposed 

project. 

Projects which meet the standards estab- 
Hshed in (a) of this Rule will be selected based 
upon the following criteria: 



(2) 
(3) 

(b) 



(1) 

(2) 
(3) 

(4) 



The extent to which the project exceeds 
the minimum standards outlined in Rule 
.1405(a); 

The demonstrated need for and appropri- 
ateness of funding; 

The probability of success of the project 
as described in the fmancial statements 
and other mformation submitted with the 
apphcation; and 
Significant local economic problems. 



Authority G.S. 143-323; 42 U.S.C.A. 5301; 24 
C.F.R. 570.489. 

TITLE 21 - LICENSING BOARDS 

l\ otice is hereby gi\-en in accordance with G.S. 
I50B-12 that the N. C. State Board of Certified 
Public Accountant Examiners intends to amend 
rule(s) cited as 21 NCAC SG .030/ and .0304. 

1 he proposed effective date of this action is May 
1, 1989. 

1 he public hearing will be conducted at 9:30 
a.m. on January 23, 1989 at N.C. State Board of 
CPA Examiners. 1101 Oberlin Road, Suite 104, 
Raleigh, N. C. 27605. 



S3: 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



C ommcnt Procedures: Any person interested in 
these rules may present oral comments relevant to 
the action proposed at the public rule-making 
hearing or deliver written comments to the board 
office not later than 9:00 a.m. on Monday, Janu- 
ary 23, 1989. Anyone planning to attend the 
hearing should notify the Executive Director at the 
Board office by noon on Wednesday, January 18, 
1989, whether they wish to speak on the proposals 
and whether they will speak in favor of the pro- 
posals or against them. 

CHAPTER 8 - BOARD OF CERTIFIED PUBLIC 
ACCOUNTANT EXAMINERS 

SUBCHAPTER 8G - PROFESSIONAL ETHICS 
AND CONDUCT 

SECTION .0300 - OTHER RESPONSIBILITIES 

.0301 ADVERTISINC; OR OTHER FORMS 
OF SOLICITATION 

(a) A certified public accountant shall not seek 
to obtain clients by advertising or other forms of 
solicitation in a manner that is false, misleading 
or deceptive. 

(b) Certified public accountants residing in 
North Carolina ma\' advertise the nature of ser- 
vices provided to clients. I to\ve\er. the licensee 
may not adsertise or indicate a spccialtv or other 
title unless the licensee has completed a course 
of study from an organization granting a separate 
title or specialty which has been recogniz.ed by 
the board. A list of specialties and titles and re- 
cognized sponsoring organizations shall be regu- 
larly published in the board newsletter. 

Statutory Authority G.S. 55B-I2: 93-12(9). 

.0304 QUALIFICATION OF PARTNERS 

A certified public accountant shall not engage 
in the public practice of accountancy with a 
partner who is havo a« a partner anyone other 
than the holder of an unrevoked and currently 
valid certified public accountant certificate. 

Statutory Authority G.S. 558-12; 93-12(9). 



ly otice is hereby given in accordance with G.S. 
150B-I2 that the Board of Medical E.xaminers of 
the State of North .Carolina intends to amend 
rule(s) cited as 21 NCAC 32B .0101, .0201; 32F 
.0003. 



1 he proposed effect r\'e date of this action is April 
I, I9S9. 

1 he public hearing will be conducted at 2:00 
p.m. on January 19, I9S9 at NC Board of Medical 
Examiners, 1313 Navaho Drive, Raleigh, North 
Carolina. 

y^omment Procedures: Persons interested may 
present written or oral statements relevant to the 
actions proposed at a hearing to be held as indi- 
cated above. Written statements not presented at 
the hearing should be directed before January 6, 
1989, to the following address: Administrative 
Procedures. NC Board of Medical Examiners, 
P.O. Box 26808, Raleigh, NC 27611-6808. 

CHAPTER 32 - BOARD OF MEDICAL 
EXAMINERS 

SUBCHAPTER 32B - LICENSE TO PRACTICE 
MEDICINE 

SECTION .0100 - LICENSE BY WRITTEN 
EXAMINATION 

.0101 MEDICAL EDUCATION 

In order to be eligible for \.C. written exam- 
ination, FLFX (Federation Ficensing Fxamina- 
tion), a physician applicant must: 

(1) be a graduate of a medical school approved 
by either: 

(a) FCME (Liaison Commission on .Medical 
Education), or 

AOA (American Osteopathic Associ- 
ation), or 

(2) if graduated from a medical school not ap- 
proved by FCME or AOA, the applicant 
must: 

(a) be enrolled in a graduate medical educa- 
tion and training program in N.C. ap- 
proved by the board (see Rule .0113); or 
furnish proof of satisfactory completion 
of three years of graduate medical educa- 
tion and training approved by the board 
(see Rule .011.3). 
(4) if graduated from a modioal cohool aet- ap- 
provod by tfee FCMF »f AOA, aft4 if clin 
teal clorkohipo afe takon m the U.S.A., tb« 
applicant muot: 
(*)• fumi ' . i h e siJt'nce Aat- he ha* fiatififactorily 
complutc ' d clinical clerkships at- teaching 
hospitals i» Ae U.S.A. wit+t ACGMF . 
(Accr e ditation Council fof Graduat e 
Medical Education) ©* i\0]\ approved 
graduate medical education aft4 training 
programs m A« areas ef tl*<* specific 
clerkships; 



ih) 



(b) 



NORTH CAROLINA REGISTER 



S38 



PROPOSED RULES 



1^ W olcrkf i hipo Jo He+ moot th* abo' i 'o Fe- 
quirumt j nt, (JofiL-ioncioD may b« romoditHl 
a* fciUovs ' O: 
(i-^ r e apply to modical F^jhool ee that- ik» 
school may arranijQ fof Ai* applicant te 
comploto apprc i od clinical clorkahipo as 
required, ef 
(«4 apply f»f admir . i . ion to advanc e d stand 
»g at- a medical ochool approved bv t^ 
LCME »f i\OA to repeat ewe yeaf »f 
clinical cl e rkships. 
No applicant graduated from a medical school 
which has been disapproved by the board shall 
be eUgible for examination or licensure in North 
Carolina. 

Burden of proof of medical education is on the 
appUcant. 

Statutory Authority G.S. 90-9. 

SECTION .0200 - LICFNSF BY ENDORSEMENT 

.0201 MEDICAL EDUCATION 

In order to be ehgible for license by endorse- 
ment of credentials, a physician applicant must: 

(1) be a graduate of a medical school appro^■ed 
by either: 

(a) L CMI: (Liaison Commission on .Medical 
Education), or 

(b) AOA (.-Vmerican Osteopathic Associ- 
ation), or 

(2) if graduated from a medical school not ap- 
proved by LCME or AOA, the appHcant 
must: 

(a) take the North CaroHna written examina- 
tion, FLEX; and 

(b) furnish proof of satisfactory completion 
of three years of graduate medical educa- 
tion and training approved by the board 
(see Rule .0113). 

(4) if graduated from a medical school Het ap- 
provod by th« LCME e* AOA, aft4 if elm 
teei clerkships afe taken ift tke U.S.A., tfee 
appUcant must: 
fa^ furnish oidence Aa4- he has satisfactorily 
completed clinical clerkships at teaching 
hospitals m the U.S.A. wi4t ACGME 
(i\ccr e ditation Council ft+f Graduate 
Medical Education) &f AOA approved 
graduate medical education aH4 training 
programs «• the areas ef the specific 
clerkships; 
(fe^ if cl e rkships de ft#t meet the above Fe- 
quirement, deficiencies fnay h^ remedied 
as follows: 
(4+ re apply to medical school se that the 
school mm arrange fof the applicant to 



complete approved clinical olorkshipo m 
required, ef 
(#} apply fof admission to advanood stand 
iftg at a modical cchool appro i i 'ed hy the 
LCME ef AOA to ropoat enB yeaf »f 
clinical clerkships. 
No applicant graduated from a medical school 
which has been disapproved by the board shall 
be eligible for examination or licensure in North 
CaroUna. 

Burden of proof of medical education is on the 
applicant. 

Statutory Authority G.S. 90-/3. 

SLBCHAPTER 32F - BIENNIAL 
REGISTRATION 

.0003 FEE 

Each physician shall pay a registration fee of 
ftfty dollars ($50-00) seventy dollars ($70.00) to 
the board; except, beginning with the 1988 regis- 
tration, each physician holding a resident's train- 
ing license shall pay a registration fee of 
twenty-five doOars ($25.00). 

Statutory Authority G.S. 90-15.1. 

TITLE 24 - INDIPKNDENT AGENCIES 

1\ otice is hereby i,'h'i.-n in accordance with G.S. 
1 50B-1 2 that the Sorth CaroHna Housing Finance 
.igencv intends to amend rule(s) cited as 24 
\C.AC IM .0201 - .0205. 

1 he proposed effect i\-c date of this action is April 
J, 1989. 

1 he public hearing will be conducted at J 0:00 
a.m. on January 16. 1989 at North Carolina 
Housing Finance Agency, 3300 Drake Circle, 
Suite 200, Raleigh. S. C. 27607. 

(^ omment Procedures: Written comments con- 
cerning this amendment must be submitted to the 
A PA Coordinator by January 16, 1989. Oral 
comments may be presented at the hearing. 

CHAPTER 1 -NORTH CAROLINA HOUSING 
FINANCE AGENCY 

SLBCHAPTER l\l - NORTH CAROLINA 
HOUSING TRUST FUND 

SECTION .0200 HOUSING .\ND ENERGY 
CONSER\ ATION INCENTIVE PROGRAM 



839 



NORTH CAROUNA REGISTER 



PROPOSED RULES 



.0201 PI RPOSE 

The purpose of the I lousing and I-'ncrgy Con- 
scn'ation rm4 llouf . ing Rohabihtation Incentive 
Program (the "Program") is to provide fundmg 
to encourage the production and rehabilitation 
of upgrading aft4 energ>' efficient ofiicioncy ef 
housing for ver>' low-, low- and moderate- 
income households. Program funds will be used 
both to leverage other funds for new housing 
production or comprehensive housing rehabili- 
tation projects improvcmcntf i and mdependently 
for wcathenzation impro\ements. 

Statutory Authority G.S. I22A-5; 1 22 A- 5. 1; 
I22E-i; I22E-5; 122E-8. 

.0202 ELIGIBILITY 

(a) I Eligible projects under the program will in- 
clude: 

(1) Comprehensive housing rehabilitation 
projects that utilize program funds for 
energy conservation improvements and 
other funding sources for the other reha- 
bilitation improvements; 

(2) Projects that exclusively involve energy 
conservation improvements to existing 
residential structures. Sp e ciFic aotivitioG 
oligiblQ fof program fundo ¥i4y- be identi 
6e4 vpi the application material aft4 fund 
iftg documontc i . 

(3) New construction projects that utilize 
program funds for energy conserv^ation- 
related elements of the projects and other 
funding sources for the remainder of the 
construction. 

(4) Demonstration projects involving one or 
more of the approaches identified in ( 1), 
(2) or (3) of this Rule. 

(b) Specilic activities eligible for program funds 
will be identified in the application material and 
funding documents. A portion of the program 
funds may be made available for predevelopment 
costs, program support and program adminis- 
tration, as determined by the partnership and 
consistent with the requirements of the act. 

fb^ (c^ Eligible applicants for program funds in- 
clude units of state and local government, public 
agencies, Pubhc Housing Authorities, lead re- 
gional organizations. Community Action Agon 
6*eft7 nonprofit organizations, and for-profit 
developers. Eligible recipients of program funds 
must directly operate the program funded. 

(e^ (d) Housing units assisted under the program 
must be occupied by very low-, low- or 
moderate-income households, as defmed in the 
act. Specific targeting of funds required under 
the program will be identified in the program 
appUcation materials and funding documents. 



(4) (e} All rental housing units assisted under 
the program must remain affordable to the oc- 
cupant, as required by the act. Applicants for 
program funding will be required to demonstrate 
how affordability will be maintained. The 
agency, through its funding agreement, will in- 
clude measures to help ensure that affordability 
is mamtained. 

fe) (j} Eligible forms of assistance under the 
program will include loans, grants, combination 
grant loans and other comparable forms of as- 
sistance which are consistent with the purposes 
of the act. Loans will be repaid to the Housing 
Trust Fund. The agency may establish standards 
for grants and loans in program documents. 

Statutory Authority G.S. 122A-5; I22A-5.1; 
I22E-4: I22E-5: I22E-8. 

.0203 APPLICATION PROCEDURES 

(a) Funding cycles for program funds will be 
established on an annual basis, or more fre- 
quently, depending on the need and the avail- 
ability of funds. Separate funding cycles may be 
utilized for new construction, rehabilitation/ 
weatherization and demonstration projects. 

(b) The agency wlU solicit applications for 
program funds by advertising in newspapers and 
other media, mailing information to eligible ap- 
plicants |as defmed in .0202 (b^ (c} ) and by other 
methods of public announcement. 

(c) Eligible applicants may apply for funding 
under the program by submitting an apphcation 
to the agency in a maimer described in the pro- 
gram application material available from the 
agency. The agency will develop the apphcation 
material which will include, but not be limited to, 
a program description, application instructions 
and the application form(s) and supporting doc- 
uments. The agency may from time-to-time 
amend the contents of the application material. 

(d) The agency will provide technical assistance 
to prospective applicants to assist them Ln pre- 
paring appUcations for program funds. 

Statutory Authority G.S. I22A-5; I22A-5.I; 
I22E-4: I22E-5: I22E-8. 

.0264 SELECTION PROCEDLRES 

(a) In distributing program funds, the partner- 
ship will develop an allocation formula that will 
promote the distribution of funds across the state 
based on the following allocation factors: lower- 
income housing need; an equitable distribution 
of funds among the state's geographic regions; 
and a balance between the avaHabHity of funds 
in urban and rural areas. 



NORTH CAROLINA REGISTER 



840 



PROPOSED RULES 



(2) 



(3) 
(4) 
(5) 



(1) 
(2) 



(3) 



(b) Ilic agency's evaluation of applications for 
funding will take into consideration the following 
criteria: 

(1) Consistency of the application with the 
purposes and requirements of the Act; 
Consistency of the application with the 
purposes and requirements of the Stripper 
Well Litigation Settlement Agreement; 

Benefit to very low- and low-income 
households; 

F.xtent to which program funds are recy- 
cled; 

Fxperience of the applicant and its ad- 
ministrative plan; and 
(6) Community support for the project. 

(c) In addition, priority will be given to projects 
that: 

Address special housing needs; 
F.xpand opportunities in areas where there 
is a shortage of standard and affordable 
housing; and 

Upgrade housing currently failing to meet 
minimum standards of health and safety. 
The Partnership may establish additional evalu- 
ation cnteria. All criteria utilized for e%aluating 
applications will be described in the application 
materials 

(d) A4i applicutiono roccivod by- A# ag e ncy vriii 
t»<* rovidvod a* t4*e tim ij they »fe roooi' i 'od to 4e- 
tcnniiiL * tf j4+^ cipplication » oomplL'tc. Appli 
cant ' - i submitting incomplL ' to upplicationa w+li be 
notifi e d by tb«^ agency aft4 be given tbe oppor 
tunity to submit additional information. AH ap- 
plication information must be submitted before 
the applicable application deadline. The agency 
wlU evaluate applications based on the allocation 
categories and the evaluation criteria described in 
Rule .0204(a) and (b) and (c). Additional infor- 
mation on the review process may be provided 
in the program application material. 

(e) If applications received by the applicable 
application deadline are insufficient to utilize all 
of the funds allocated to a funding cycle, ge- 
ographic region and urban or rural area, or other 
funding category, the partnership, at its dis- 
cretion, may extend the application deadline, fof 
thai region et area. Funds allocated to a funding 
category^ rotjonoaroao may also be reallocated by 
the partnership, in a manner defmed by the 
partnership, if the available funds are underuti- 
lized within the region e* afea category. 

(f) Upon completion of its review, the agency 
will determine whether funding approval will be 
granted or denied. The agency will notify appli- 
cants selected for funding in writing of the 
amount of funding awarded, the timeframe for 
the funding awarded and will provide additional 



information about the funding awarded. When 
the agency is unable to approve an application 
for funding, it will notify the applicant in writing 
and specify the reason for the denial of funding. 

Statutory Authority G.S. 1 22 AS; 1 22 AS. I; 
I22E-4: I22ES; I22E-8. 

.0205 ADVIIMSTRATION 

(a) The agency will enter into a funding agree- 
ment with each applicant selected as a program 
recipient. The agreement will include, but not 
be limited to: 

(1) The amount of funding; 

(2) The obligations of the recipient; 

(3) The terms of the disbursement of funds 
from the Housing Trust Fund; 

(4) The maximum loan or grant amount per 
housing unit assisted with program funds; 
and 

(5) Provisions for the repayment of grants and 
loans to the Housing Trust Fund by re- 
cipients, subrecipients and their successors 
and assigns. 

(b) The agency will periodically review the 
performance of project recipients according to 
the funding agreement. This will be done at least 
annually and may be done on a mOre frequent 
basis. 

(c) Recipients will submit such periodic reports 
as required by the agency to facilitate the moni- 
toring process. The reports wiU be described in 
greater detail in the program funding documents. 
The reports wUl include, but not be limited to, 
progress on the accomplishment of program ob- 
jectives including information on program bene- 
ficiaries and housing units improved and armual 
audited financial statements. 

(d) If the agency fmds there has been substan- 
tial nonperformance under the funding agreement 
and the situation is not corrected within a period 
of time, as established in the funding agreement 
and after notice to the recipient of such fmding, 
the agency may terminate or modify the agree- 
ment after written notice is provided. 

Statutory Authority G.S. I22AS: I22AS.I: 
I22E-4: I22ES: I22E-8. 



l\ otice is hereby given in accordance with G.S. 
1 508- 1 2 that the North Carolina Agricultural Fi- 
nance Authority intends to adopt rule(s) cited as 
24 SCAC 2A .000/ - .0003; 2B .000/ - '.0002; 2C 
.000/. 



841 



NORTH CAROLlN.i REGISTER 



PROPOSED RULES 



1 he proposed effective date of this action is April 
I, 1989. 



T. 



1 he public hearing will be conducted at 1 :00 
p.m. on January 18, 1989 at Offices of North 
Carolina Agricultural Finance Authority, Suite 
406. 19 West Hargett Street, Raleigh, NC 27601. 



c 



omment Procedures: 

a. By appearance at hearing. 

b. By written comment 3 days prior to hearing. 



CHAPTER 2 - N.C. AGRICLLTLRAL FINANCE 
AUTHORITY 

SLBCHAPTER 2A - GENERAL PROVISIONS 

.0001 OBJECTIVES 

(a) The primary objective of the Authority is 
to provide capital and credit at interest rates 
within the fmancial means of persons engaged in 
all aspects of agriculture, including agribusiness. 

(b) The Authority will periodically make loans, 
either directly or through an originating agent, to 
borrowers from Authority funds available for this 
purpose. These may be direct loans or loans 
with FmllA guarantee for the purposes of farm 
real estate, farm operating loans, or agricultural 
business loans for providing agricultural services, 
processing, marketing or exporting of products. 



Statutory Authority G.S. 
I22D-7. 



I22D-2; I22D-6: 



.0002 DEFINITIONS 

The following words and terms, unless their 
context shall clearly indicate a different defmition, 
shall be defmed and mean as foUows: 

(1) "Applicant" is a person applying to the 
Authority for a loan. 

(2) "Authority" means the North CaroUna 
Agricultural Finance Authority. 

(3) "Agriculture" is defmed in G.S. 122D-3(2). 

(4) "Agribusiness" means the business of 
processing, marketing, distributing, manu- 
facturing or exporting the products of agri- 
culture. 

(5) "Agricultural Loan" is defmed in G.S. 
122D-3(1). 

(6) "Borrower" means a person to whom the 
Authority or a lender has made a loan who 
is a person engaged in agriculture or 
agribusiness in the state of North Carolina. 

(7) "FmHA" means the United States of 
America, acting through the Farmers' Home 
Administration of the United States De- 
partment of Agriculture. 



(8) "Holder" means a person or lender pur- 
chasing all or a portion of a loan from the 
Authority. 

(9) "Guaranteed Loan" means any loan made 
by a lender or the Authority which is subject 
to a guarantee of repayment of principal and 
accrued interest by the FmHA pursuant to 
any guaranteed loan program authorized by 
the Consolidated Farm and Rural Develop- 
ment Act (7 U.S.C. § 1921 et. seq.) and 
described in various subparts of 7 C.F.R 
Part 1980. 

(10) "Lender" or "Lending Institution" means 
any bank or bank trust company, federal 
land bank, production credit association, 
bank for cooperatives, building and loan as- 
sociation, homestead insurance company, 
investment banker, mortgage banker or 
company, pension or retirement fund, 
savings bank or savings and loan associ- 
ation, small business investment company, 
credit union, the Federal Government or 
any other fmancial institution authorized to 
do business in the state or operating under 
supervision of any federal agency or any 
corporation organized or operating pursuant 
to Section 25 of the Federal Reserve Act. 

(11) "Loan" means a loan made by the Au- 
thority to a borrower or a loan made by a 
lender to any borrower which is purchased 
by the Authority. 

(12) "Members" means the members of the 
North Carolina Agricultural Finance Au- 
thority constituted pursuant to North 
Carolina G.S. 122D-4. 

(13) "Note" means a note made by a borrower 
in favor of the Authority or a note made by 
a borrower in favor of a lender purchased 
by the Authority. 

( 14) "Originating Agent" means an agent acting 
on behalf of the Authority pursuant to an 
originating agreement. 

(15) "Originating Agreement" means the one 
or more agreements by that name between 
the Authority and an originating agent or 
agents pursuant to which the originating 
agent or agents will originate loans on behalf 
of the Authority. 

(16) "Person" or "Persons" shall mean any 
individual, partnership, frrm, corporation, 
company, cooperative, association, society, 
trust, joint operator or any other business 
unit or entity, including any state or federal 
agency. 

Statutory' Authority G.S. I22D-6; 1220-7; 
I22D-I0. 



NORTH CAROUNA REGISTER 



842 



PROPOSED RULES 



.0003 SALE OF LOANS BY AUTHORITY 

The Authority may, for value received, sell all 
or a portion of any agricultural loan made or 
purchased by the Authority. 

Statutory Authority G.S. I22D-7. 

SI BCUAPTKR 28 - FARM REAL ESTATE LOAN 
PROGRAMS 

.0001 LENDING PROCEDURES 

(a) The Authority will make agricultural loans 
to eligible borrowers to finance the acquisitions 
or improvement of real property from funds 
available to the Authority for this purpose. The 
Authonty shall have overall administrative re- 
sponsibility for the Real Estate Loan Program. 

(b) Applicants will apply for loans on an ap- 
phcation to be provided by the Authority. The 
apphcant must adhere to the requirements of the 
application process including providing all rele- 
vant documents requested by the Authority or 
ImllA, in the case of guaranteed loans. The 
following application process wiU be imple- 
mented by the Authority: 

(1) The Authority will review the application 
from the applicant and make a decision 
as to whether to approve the application. 

(2) For guaranteed loans, approval by the 
Authority requires the application to be 
forwarded to FmHA for approval. 

(3) A denial of approval by either the Au- 
thority or FmHA does not provide the 
applicant any recourse unless the reason 
for disapproval of the loan can be reme- 
died and is allowed by either the Author- 
ity or FmHA. 

(4) Following approval, the Authority or an 
agent thereof will originate and document 
the closing of the loan. 

(c) The Authority, or its agent, wiU service the 
loans made pursuant to this program in accord- 
ance with sound banking practices and, for guar- 
anteed loans, applicable FmHA requirements. 

Statutory Authority G.S. I22D-6; I22D-7. 

.0002 ELIGIBLE BORROWERS 

Fligible borrowers are applicants who demon- 
strate to the Authority that they satisfy the fol- 
lowing criteria: 

( 1 ) Need for an agricultural loan to finance 
agriculture or agribusiness; 

(2) Have the ability to repay the loan; 

(3) Establish the sufficiency of the collateral for 
the loan; and 

(4) Any other requirements which may be im- 
posed by the Authority, or FmHA in the 



case of guaranteed loans, in the exercise of 
sound banking practices. 

Statutory Authority G.S. J22D-2; I22D-6. 

SUBCHAPTER 2C - AGRIBUSINESS LOANS 

.0001 LENDING PROCEDURE 

(a) The Authority wiQ make loans to persons 
engaged in agribusiness for the purpose of fi- 
nancing agribusiness from funds available to the 
Authority for this purpose. 

(b) Each agribusiness loan shall be separately 
underwritten and separately approved by the 
Authority. 

Statutory Authority G.S. l22D-6(4). 

TITLE 26 - OFFICE OF ADMINISTRATIVE 
HEARINGS 



No 



' otice is hereby given in accordance with G.S. 
J SOB- 12 that the Office of Administrative 
Hearings intends to amend and adopt rule(s) 
cited as 26 NCAC 4 .0001. .0008, .0009 and 
.0010. 

1 he proposed effective date of this action is April 
I. 1989. 

1 he public hearing will be conducted at 10:00 
a.m. on January 16. 1989 at Hearing Room I , Lee 
House, 422 North Blount Street, Raleigh, North 
Carolina. 



Co 



^-omment Procedures: Comments may be sub- 
mitted in person or in writing at the public hearing 
or in writing prior to January 16, 1989, to Edward 
T. Smith, Director of the Civil Rights Division, 
Office of Administrative Hearings, P. O. Drawer 
11666, Raleigh, North Carolina 27604. 

CHAPTER 4 - CIVIL RIGHTS DIVISION 



.0001 INTRODUCTION 

(a) TTie Equal Employment Opportunity 
Corrmiission (FEOC) has designated the North 
Carolina State Office of Administrative Hearings 
as a 706 Deferral Agency. otToctivo August 2?t 
1Q86. The North Carolina General Assembly 
has designated the Office of Administrative 
Hearings as the State's 706 Deferral Agency in 
G.S. 7A 751 7A-759. 

(b) The Office of Administrative Hearings 
(OAH) h e reby accepts deferral by the EEOC 



S4i 



NORTH CAROLINA REGISTER 



PROPOSED RULES 



fww of the following classes of charges filed with 
the EliOC in North Carolina: 

All charges alleging race, color, sex, religion, age 
or national origin discrimination in employment, 
or retaliation for opposition to such alleged dis- 
crimination, filed by previous and current state 
employees or applicants for employment who 
were or are subject to North Carolina General 
Statutes Section 126-16 and Article 8 of Chapter 
126, North Carolina General Statutes, which 
have been filed with the EEOC within the time 
limits set forth in North Carolina Genera] Stat- 
utes Section 126-38. 

(c) The Civil Rights Division is the unit within 
the OlTice of Administrative Hcanngs ch^irged 
with the responsibility of carrying out the inves- 
tigations and conciliations of deferred charges. 

Statutory Authority G.S. 7A-739; I50B-II. 

.0008 CONTESTED CASE HEARING 

(a) Cause determinations which have not re- 
sulted in a settlement f or conciliation agroomont 
constituting fuU relief will be heard as a contested 
case as provided in G.S. 7A-759, followL ' d hf aft 
informal hearing, and a ^^ Final Dccioion final 
decision will be issued which will be binding 
upon the parties. 

(b) At the conclusion of the infonnol contested 
case hearing, the investigation Report, report, the 



704 Final Dooifion, final decision in the con- 
tested case, and the case file will be forwarded to 
EEOC. 

Statutory Authority G.S. 7A-759; I50B-II. 

.0009 AUTHORITY TO ADMINISTER 
OATHS OR AFFIRMATIONS 

When it is necessary to have the power to ad- 
minister oaths or affirmations in investigating a 
specific charge, the Director or any employee of 
the Civil Rights Division may apply to the Chief 
Administrative Law Judge for such authority 
setting out the reasons therefore. 

Statutory Authority G.S. 7A-759(c). 

.0010 SLBPOENAS 

If any subpoena, including a subpoena ducus 
tecum, is required for the proper investigation of 
a charge, the Director or any employee of the 
Civil Rights Division may apply to the Chief 
Administrative Law Judge for issuance of the 
subpoena under the authority of G.S. 7A-756(2). 
The subpoena shall issue in the discretion of the 
Chief Administrative Law Judge. 

Statutory Authority G.S. 7A-756(2J. 



NORTH CAROLINA REGISTER 



844 



LIST OF RULES AFFECTED 



NORTH CAROLINA ADMINISTRATTNT CODE 
EFFECTrVT: December 1, 1988 



AGENCY 






DKP \RTMFNT OF ADMINISTRATION 


1 NCAC 21 F 


.0101 - 


.0102 




.0201 - 


.0205 




.0301 - 


.0304 




.0401 - 


.0405 




.0501 - 


.0504 


DKPAR [MKNT OF AGRICl 


LTl RE 




2 NCAC 38 


.0301 
.0401 
.0701 
.0704 




48A 


.0209 
.0221- 
.0238 
.0608 






.1501 - 


.1508 


48C 


.0002 
.0005 
.0023 
.0026 




GONFRNORS OFFICE 







NCAC 2 Executive Order Number 78 
Eff. November 1, 1988 



DEPARTMENT OF HIM AN RESOl RCES 



10 NCAC 3C 


.0712- 


.0713 


4C 


.0303 




7F 


.0107 




lOA 


.0309 




lOD 


.1006 
.1313 
.1624 

.2604 




lOF 


.0030 






.0032 - 


.0033 


14B 


.0501 - 


.0508 


15A 


.0501 - 


.0504 


20F 


.0401 - 


.0418 


26H 


.0104 
.0107 
.0401 




42C 


.2002 




DEPARTMENT OF N ATI RAL RESOURCES 



ACTION TAKEN 



Adopted 
Adopted 
Adopted 
Adopted 
Adopted 



Amended 

Amended 

/Vmended 

Amended 

Amended 

Amended 

Adopted 

Amended 

Adopted 

Amended 

Amended 

Amended 

Adopted 



Adopted 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

/^mended 

Amended 

Adopted 

Adopted 

Adopted 

/Vmended 

Amended 

Amended 

/Vmended 



15 



NCAC 4A .0001 



.Amended 



845 



NORTH CAROLINA REGISTER 



LIST OF RULES AFFECTED 



5F 
lOF 



.0005 
.0330 
.0356 



DEPARTMENT OF REVENUE 



17 



NCAC 



6B 
6C 
7B 

IC 



.0320 

.0102 

.4604 

.0103 

.0201 

.0301 

.0401 ■ 

.0501 



.0104 
.0203 
.0302 
.0402 
.0503 



Amended 
Amended 
Adopted 



Amended 
Amended 
Amended 
Amended 
Repealed 
Repealed 
Repealed 
Repealed 



BOARD OF CERTIFIED PI BLIC ACCOUNTANT EXAMINERS 



21 NCAC 8F .0401 

81 .0004 

8J .0006 

8K .0201 

BOARD OF CHIROPRACTIC EXAMINERS 

21 NCAC 10 .0101 - .0102 
.0103 - .0104 
.0203 - .0205 
.0302 
.0401 
.0402 
.0403 
.0404 

.0405 - .0406 
.0501 
.0502 
.0503 
.0601 

.0602 - .0603 
.0604 - .0606 
.0609 - .0610 
.0701 - .0704 
.0707 
.0801 - .0802 

BOARD OF MORTUARY SCIENCE 



Amended 
Amended 
Amended 
Amended 



Repealed 

Amended 

Amended 

.^mended 

Amended 

Repealed 

Amended 

Repealed 

Amended 

Amended 

Repealed 

Adopted 

Repealed 

Amended 

Repealed 

Repealed 

Repealed 

Amended 

Repealed 



21 NCAC 34 .0109 

BOARD OF PODIATRY EXAMINERS 



Amended 



21 



NCAC 52 



.0101 - .0102 

.0201 - .0202 

.0203 

.0204 - .0208 

.0209 

.0301 - .0302 

.0303 

.0401 

.0402 - .0404 



iVmended 

Amended 

Repealed 

Amended 

Adopted 

Amended 

Adopted 

Repealed 

Amended 



NORTH CAROLINA REGISTER 



846 



LIST OF RULES AFFECTED 



0405- 


.0407 


0408 




0501 - 


.0504 


0601 - 


.0606 


0607- 


.0609 


0610 




0701 - 


.0703 


0801 - 


.0803 


0901 - 


.0908 


1001 




1002 




1004- 


.1005 


1101 - 


.1107 


1201 




1202- 


.1204 


1301 - 


.1302 



Repealed 

Amended 

Repealed 

.Amended 

Repealed 

Adopted 

Amended 

Repealed 

Repealed 

Amended 

Amended 

Amended 

Repealed 

Repealed 

Amended 

Amended 



INDKF'FNDENT AGKNCIFS 



24 NCAC IM .0201 - 


.0205 


2A .0001 - 


.0003 


2B .0001 - 


.0002 


2C .0001 




OFFICE OF STATE PERSONNEL 





Adopted 
Temp. Adopted 
Expires 05-17-89 
Temp. Adopted 
Expires 05-17-89 
Temp. Adopted 
Expires 05-17-89 



25 



NCAC IC 


.0411 




ID 


.0201 




IE 


.0201 
.0208 
.0210 
.0212 
.0305 
.0309 






.0501 - 


.0503 




.0506 - 


.0510 




.0706 - 


.0710 




.0803 






.0814 - 


.0815 




.0901 - 


.0902 




.1001 






.1004- 


.1005 




.1102- 


.1103 




.1105 






.1201 - 


.1203 


IF 


.0104 
.0201 
.0205 
.0301 






.0303 - 


.0305 




.0307 






.0401 






.0502 - 


.0503 


III 


.0603 
.0605 
.0624 





/Vmended 
Amended 
Amended 
Amended 
Amended 
.Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
Amended 
.\mended 
Amended 
Amended 
Amended 



S47 



NORTH CAROLINA REGISTER 



NC AC INDEX 



TITLE/MAJOR DFV ISIONS OF THE NORTH CAROLINA ADMINISTRATIVE CODE 
TITLE DEPARTMENT 



1 

2 

3 

4 

5 

6 

7 

8 

9 
10 
11 
12 
13 
14A 
15 
16 
17 
18 
19A 
20 
*21 
22 
23 
24 
25 
26 



Administration, Department of 

Agriculture, Department of 

Auditor, Department of State 

Commerce, Department of 

Corrections, Department of 

Council of State 

Cultural Resources, Department of 

Elections, State Board of 

Governor, Office of the 

Human Resources, Department of 

Insurance, Department of 

Justice, Department of 

Labor, Department of 

Crime Control and Public Safety, Department of 

Natural Resources and Community Development, Department of 

Education, Department of 

Revenue, Department of 

Secretary of State, Department of 

Transportation, Department of 

Treasurer, Department of State 

Occupational Licensing Boards 

Administrative Procedures 

Community Colleges, Department of 

Independent Agencies 

State Personnel, Office of 

Administrative Hearings, Office of 



NOTE: Title 21 contains the chapters of the various occupational licensing boards. 
CHAPTER LICENSING BOARDS 



2 
4 
6 
8 
10 
12 
14 
16 
18 
20 
21 
22 
26 
28 
31 
32 
33 
34 
36 
37 
38 
40 
42 



Architecture, Board of 

Auctioneers, Commission for 

Barber Examiners, Board of 

Certified Public Accountant Examiners, Board of 

Chiropractic Examiners, Board of 

Contractors, Licensing Board for 

Cosmetic Art Examiners, Board of 

Dental Examiners, Board of 

Electrical Contractors, Board of Examiners of 

Foresters, Board of Registration for 

Geologists, Board of 

Hearing Aid Dealers and Fitters Board 

Landscape Architects, Licensing Board of 

L^andscape Contractors, Registration Board of 

Martial & Family Therapy Certification Board 

Medical Examiners, Board of 

Midwifery Joint Committee 

Mortuary Science, Board of 

Nursing, Board of 

Nursing Home Administrators, Board of 

Occupational Therapists, Board of 

Opticians, Board of 

Optometry, Board of Examiners in 



NORTH CAROLINA REGISTER 



848 



NC AC INDEX 



44 Osteopathic Examination and Registration, Board of 

46 Pharmacy, Board of 

48 Physical Therapy, Examining Committee of 

50 Plumbing and Heating Contractors, Board of 

52 Podiatry Examiners, Board of 

53 Practicing Counselors, Board of 

54 Practicing Psychologists, Board of 

56 Professional Engineers and Land Surveyors, Board of 

58 Real Estate Commission 

60 Refrigeration Examiners, Board of 

62 Sanitarian Examiners, Board of 

63 Social Work, Certification Board for 

64 Speech and Language Pathologists and 

Audiologists, Board of Examiners of 

66 Vctcrmary Medical Board 



S49 NOR TH CAROLINA REGIS TER 



CUMULA TIVE INDEX 



CVMULA TIVE INDEX 

(April 1988 - March 1989) 



1988 - 1989 

Pages Issue 

1 - 25 1 - April 

26 - 108 2 - April 

109 - 118 3 - May 

119 - 145 4 - May 

146 - 184 5 - June 

185 - 266 6 - June 

267 - 294 7 - July 

295 - 347 8 - July 

348 - 400 9 - August 

401 - 507 10 - August 

508 - 523 11 - September 

524 - 593 12 - September 

594 - 606 13 - October 

607 - 686 14 - October 

687 - 728 15 - November 

729 - 799 16 - November 

800 - 833 17 - December 

834 - 853 18 - December 



AO - Administrative Order 

AG - Attorney General's Opinions 

C - Correction 

E - Errata 

EO - Executive Order 

EDL - Einal Decision letters 

FR - Einal Rule 

GS - General Statute 

JO - Judicial Orders or Decision 

ERA - List of Rules Affected 

M - Miscellaneous 

NP - Notice of Petitions 

PR - Proposed Rule 

SO - Statements of Organization 

TR - Temporary Rule 



ADMINISTRA riON 

Administrative Analysis Division, 447 PR 

Auxiliary Scr\'ices, 270 PR 

Departmental Rules, 270 PR 

Human Relations Council, 609 PR 

State Construction, 187 PR, 834 PR 

Youth Advocacy and Involvement Office, 148 PR 

ADMIMSTRAXrV E HEARINGS 



NORTH CAROLINA REGISTER 



850 



CUMULA TIVE INDEX 



General, 579 PR 

Hcanngs Division, 76 PR, 581 PR 

Rules Division, 580 PR 

706 Dctemil, 843 PR 

ADMrsISTRAlTV E ORDKR 

Adininistratne Order, 369 AO 

ACxRICLLTLRE 

Food and Drug Protection Division, 271 PR 

N.C. Gasoline and Oil Inspection Board, 689 PR 

N.C. Pesticide Board, 524 PR 

N.C. State Fair, 451 PR 

Plant Industrv-, 453 PR 

Standards Division, 452 PR 

Structural Pest Control Committee, 296 PR 

COMMERCE 

.\lcoholic Beverage Control Commission, 276 PR 

Departmental Rules. 612 PR 

Milk Commission, 120 PR, 190 PR 

N.C. State Ports Authonty, 731 PR 

Seafood Industnal Park Authonty, 613 PR 

COMMITSITV COELEGES 

Community Colleges, 287 PR, 557 PR 

CORRECTION 

Division of Pnsons, 490 FR 

CREME CONTROE AND PEBEIC SAFETY 

/Vlcohol Law Enforcement, 47 PR 

CUETURAE RESOURCES 

Division of .'Vrchi\es and IIistorN, 691 PR 

ELECTIONS 

State Board of Elections, 120 PR 

EXECLTH E ORDERS 

Executive Orders 68-71, 1 FO 

72,119 EO 

73, 146 EO 

74 - 75, 508 EO 

76 - 77, 594 EO 

78, 800 EO 

EINAE DECISION FETTERS 

Votmtj Riahts Act, 5 FDL, 26 FDL, 185 FDF, 267 FDL, 295 FDE, 370 FDL, 
401 FDL, 511 FDL, 597 FDL, 608 FDL, 688 FDL, 729 FDL, 801 FDL 

GENERAL STATUTES 

Chapter 7A, 348 GS 
Chapter 143B, 350 GS 
Chapter 150B, 352 GS 

HUMAN RESOl RCES 

Division of Aging, 229 PR 
Drua Commission, 113 FR 



851 NOR TH CAROLINA REGIS TER 



CUMULA TIVE INDEX 



Facility Services, 455 PR, 524 PR, 614 PR, 739 PR 

Health Services, 7 PR, 220 PR, 296 PR, 616 PR 

Medical Assistance, 7 PR, 30 PR, 109 PR, 121 PR, 237 PR, 303 PR, 461 PR 

Mental Health: General, 457 PR, 530 PR, 770 PR 

Mental Health: Hospitals, 459 PR 

Mental Health: Mental Retardation and Substance Abuse Services, 629 PR 

Mental Health: Other Programs, 530 PR, 

Office of the Secretary, 31 PR 

Social Services Commission, 27 PR, 531 PR 

Vocational Rehabilitation Services, 371 PR 

INDEPENDENT AGENCIES 

Agricuhural Finance Authority, 841 PR 

Housmg Finance, 21 PR, 134 PR, 255 PR, 518 PR, 839 PR 

INSURANCE 

Agent Services Division, 238 PR, 636 PR 

Company Operations Division, 470 PR 

Consumer Services, 691 PR 

Engineering and Building Codes, 772 PR 

Fire and Casualty Division, 32 PR, 461 PR, 773 PR 

Fire and Rescue Services Division, 122 PR, 149 PR 

Life; Accident and Health Division, 534 PR 

JUSTICE 

Criminal Justice Education and Training Standards, 304 PR 
Private Protective Services, 303 PR, 834 PR 

LABOR 

Boiler and Pressure Vessel, 598 PR 

Elevator and Amusement Device Division, 599 PR 

Notice, 607 C 

Office of Occupational Safety and Health, 598 PR 

LICENSING BOARDS 

Cosmetic /\rt Examiners, 283 PR, 473 PR 
CPA Examiners, 73 PR, 472 PR, 837 PR 
Dental Examiners, 704 PR, 820 PR 
Examiners of Electrical Contractors, 151 PR 
Hearing Aid Dealers, 77 ER 
Medical Examiners, 838 PR 
Nursing, 376 PR, 477 PR, 704 PR 
Podiatry Examiners, 377 PR 

LIST OF RULES AFFECTED 

April 1, 1988, 102 ERA 
May 1, 1988, 137 ERA 
June 1, 1988, 260 ERA 
July 1, 1988, 335 ERA 
August 1, 1988,496 ERA 
September 1, 1988, 585 ERA 
October 1, 1988, 675 ERA 
November 1, 1988, 790 ERA 
December 1, 1988, 845 ERA 

NATURAL RESOURCES AND COMMUTMTY DEVELOPMENT 

Coastal Management, II PR, 67 PR, 254 PR, 281 PR, 703 PR 
Community Assistance, 69 PR, 555 PR, 836 PR 
Division of Economic Opportunity, 556 PR, 778 PR 



NOR TH CA ROLINA REGIS TER 852 



CUMULA TIVE INDEX 



I'nvironmental Management, 241 F'R, 278 PR, 599 PR, 656 PR, 698 PR, 777 PR 
Forest Resources, 68 PR 
Marine J-isheries, 62 VK 
Soil and Water Conservation, 1 1 1 PR 

Wildlife Resources and Water Safety, ill PR, 282 PR, 470 PR, 513 PR, 555 PR, 
599 PR, 656 PR, 777 PR, 805 PR, 835 PR 

NO IKK OF PETITION 

Municipal Incorporation, 804 NP 

RKVENl K 

Individual Income Tax, 710 I-R, 825 FR 

License and Fxcise Tax, 1 13 FR 

Motor Fuels Tax, 258 FR 

Sales and Use Taxes, 386 FR, 584 FR, 826 FR 

SKCRK lARV OF STATE 

Securities Division, 125 PR, 656 PR 

SIA IE PERSONNEL 

State Personnel Commission, 135 PR, 333 PR, 559 PR, 781 PR 

SIATE TREASURER 

I:scheats and Abandoned Property, 328 PR 
Focal Government Commission, 18 PR 
Retirement Systems, 513 PR 

SI AFEMEN rs OF ORfiANIZAl ION 

Statements of Organization, 403 SO 

TRANSPORTATION 

Division of Ilithwa^s, 719 FR 

Division of Motor Vehicles, 172 FR, 258 FR, 720 FR 



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